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Chevy Volt Meets High Resistance, GM Suspends Sales
Hugh Pickens writes "The Hill reports that GM has announced to employees at one of its facilities that it is suspending production of the Chevy Volt for five weeks and temporarily laying off 1,300 employees. Back when GM launched the beleaguered electric car, it boldly targeted sales of 10,000 in 2011 and 60,000 in 2012 but GM only sold 7,671 Volts in 2011 and just 1,626 so far this year. 'We needed to maintain proper inventory and make sure that we continued to meet market demand,' says GM spokesman Chris Lee. 'We see positive trends, but we needed to make this market adjustment.' Although President Obama promised he would buy a Volt 'five years from now, when I'm not president anymore,' the Volt has come under criticism from Republicans in Congress because of reports of its batteries catching on fire during testing. Ironically, the shutdown comes as gas prices are soaring, exactly the time when an electric car should be an easy sell." If it's still true that GM was taking a loss on every Volt sold, perhaps this is a blessing in disguise.
Suspending production != Suspending sales. The two mean quite different things.
Less economical than a Prius
Not as good as a Prius
Costs more than a Prius
Buy a Prius.
To use a reverse car analogy, it's Motorola Xoom to iPad2.
From scarped cliff or quarried stone she cries "A thousand types are gone, I care for nothing, no not one."
I can buy TWO Ford Focus 40mpg cars for the same price as a Volt.
Unlike other districts, there are no subsidies for the Volt in Saskatchewan.
$20,000 buys a HELL of a lot of gasoline.
I do not fail; I succeed at finding out what does not work.
When you make a product for political reasons, not because there's a market, and then subject it to the market, it tends not to do well. Huh.
-- Two men say they're Jesus. One of them must be wrong. - Dire Straits
The do, and people do.
I don't live in the US any more, but I'm hardly unique (ie, there are people like me still there) who would really love to go electric since our driving patterns are ideally suited to having a small, quiet, economical electric car that you recharge at night at home. (DISCLAIMER: yes, I'm aware, you need to tow your boat from LA to NYC every 2 days while simultaneously carrying 8 people and their luggage and there are no charging stations on route... electric cars useless for everyone etc etc, no possible use case etc etc...)
However, the current economics aren't making them viable - they're just too expensive at the moment but it's a chicken and egg problem since it's early generation tech and in low initial demand.
Don't mistake slow sales of a very expensive electric vehicle as definitive proof of a lack of interest. When (if?) I can buy one for a similar cost (also factoring in fuel costs) to the 2 litre turbodiesel minivan I drive right now (53 mpg EU / 44.1 mpg US) that can easily haul 5 adults and luggage then I am sure sales will pick right up. Cracking that early adopter and economy of scale problem is not easy though. Bear in mind that I also pay around $8 per gallon for diesel in the UK and it's still cheaper than going all-electric right now (or even to hybrid).
Without significant subsidies GM would have sold even fewer cars. The subsidy is a just transfer payment to the well off. High efficiency diesel engines are probably the most cost effective option for the masses and our stupid EPA requirements keep best ones out of the USA.
Yes, it is quite stupid of the EPA to worry about nitrogen dioxide. The masses need cost-effective cars, not healthy lungs.
My 2003 Monte Carlo has 220,000 miles on it. I did choose to replace the motor and trans (both used) at 200,000 miles though instead of rebuilding the trans when the pressure control solenoid gave out and repair would have cost as much as the replacement motor and trans together, so those only have around 72K on them. Runs like a dream and by the condition of the interior and exterior you would never know this car had anywhere near 100K miles much less 220,000. Any car from the "big three" built within the past 20 years that is worth buying these days can go 300,000 miles with basic maintenance. Cars were garbage in the 80's and I think a lot of the mentality around longevity in the US these days is still based on experiences with those cars.
"Cannot get 4 adults plus dog plus ancillaries in a Yaris."
Have multiple vehicles. I don't drive my F350 Ford or 366 big block Chevy truck unless I need to, but liability insurance is cheap and they are paid for.
Multiple vehicles allows selection of the right tool for the job.
Or rent what you need when you need it. We have a small car which we mainly use for commuting. When we need something bigger or with more cargo space (like a pickup), we rent from the city carshare program or a regular car rental agency which has surprisingly good weekend rates since they have a glut of cars from business travelers). The city carshare program is especially nice when I have to work late unexpectedly, they have cheap overnight rates and there are several locations within easy walking distance from work so I've always been able to get a car when I need it, even last minute. The overnight car rental rate is cheaper than it would cost to take a cab home.
Our occasional car rental bill is much lower than our car payment would be on a second car.
Your numbers are way way way off. You probably missed a decimal point, it's $0.09 less (at best) per mile and not $0.90. Not counting maintenance and so on.
That changes your examples significantly.
Now your hypothetical ideal Volt candidate only saves $985.50 per year. And pays $20000 more for the car. In other words even the ideal user would lose money by buying a volt because they'd never make up the cost premium
So yes, the comparison is very simple. The Volt sucks and no one should buy one.